Despite a massive decline in demand – housing prices are on the rise
After years of boom in the residential real estate market, housing development companies sold only 40,900 new homes in the country’s seven largest cities last year, according to Poland’s largest real estate portal Otodom. This is the lowest annual figure since 2014 and represents a decline of 35 per cent compared to 2021. At 38 per cent, the decline is also similar for private owner-occupied homes.
Despite the drop in sales figures, prices for sold residential units in major Polish cities increased by 9 per cent year-on-year to 11,800 Złoty (~€2,525) per m2 in 2022, according to Otodom. The largest increase was recorded in the capital city – Warsaw with 14 per cent, followed by Katowice with 12 per cent. According to most real estate experts, housing prices are not expected to fall nominally in the coming months due to the high costs incurred for development and the high costs of materials and labour. Only in individual cases the housing developers, who have been pressed to repay their loans to the banks, will be willing to make price concessions when selling their flats.
Source: Wirtschafts-Markt Polen (01-2023 Issue 322)
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